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Author | Liu Baodan

Editor | Huang Yu

Since JD.com’s purchasing and sales went viral on Double Eleven last year, it has begun to place high hopes on live streaming and has tried to get a piece of the pie in the fierce live streaming competition.

Wall Street Journal has learned that JD.com recently announced that it will invest an additional 1 billion yuan in cash and traffic resources each month to provide unlimited "real money" subsidies and "substantial" support to high-quality institutions and talents.

This is at least the third time this year that JD.com has allocated resources to live streaming, which shows JD.com's commitment to content e-commerce.

In March this year, JD Retail first proposed "content ecology", which, along with "open ecology" and "instant retail", was listed as the company's three major directions for 2024, namely "three must-win battles". According to insiders, "content ecology" includes JD's in-site sections such as live broadcasting and short videos.

A month later, JD.com officially announced that it would invest 1 billion in cash and 1 billion in traffic to attract more original creators and high-quality content organizations to join. The person in charge of JD.com's content ecology said that video creators are an important force in promoting the prosperity of the content ecology, and this move is intended to inspire creators to produce professional and interesting content.

In this incentive, JD.com subsidizes talents in more than 20 creative fields, including digital 3C, home appliances, and maternal and child products, in cash. JD.com also provides more exposure opportunities for high-quality, original videos. In addition, JD.com also extends an olive branch to MCN organizations, and specially sets up an organization incentive list of up to 5 million yuan.

The 618 promotion became a rehearsal for JD.com's live broadcast. As of the evening of June 18, JD.com's 618 transaction volume and order volume in 2024 hit new highs, and JD.com's live broadcast order volume increased by more than 200% year-on-year; JD Cloud Yanxi digital people were broadcast in more than 5,000 brand live broadcast rooms, with a total live broadcast time of more than 400,000 hours and a total of more than 100 million viewers.

Currently, e-commerce is still in a fierce market competition. JD.com is facing siege from new e-commerce forces such as Pinduoduo, Douyin, and Xiaohongshu, as well as traditional e-commerce rival Alibaba. Looking at the entire e-commerce industry, the fastest growing area is still live streaming e-commerce.

According to a research report by iResearch Consulting, the scale of China's live e-commerce market will reach 4.9 trillion yuan in 2023, a year-on-year growth rate of 35.2%, and the compound annual growth rate of the market scale is expected to reach 18% from 2024 to 2026. For JD.com, this is an opportunity that cannot be missed.

JD.com can be said to have started early but arrived late in the development of live streaming e-commerce.

In fact, JD.com started live streaming as early as 2016, and Liu Qiangdong even appeared on camera to cook. Unfortunately, JD.com always regarded live streaming as a marketing method and did not raise it to a strategic level, thus missing out on the bonus period of live streaming e-commerce. Now, JD.com hopes to regain its position through digital human live streaming.

This time, JD.com has increased its investment in live streaming. In addition to providing incentives to service providers and influencers, it has also placed emphasis on digital human live streaming service providers. This also means that JD.com's support focus is still on digital human live streaming.

Specifically, JD.com will provide targeted support to service providers and influencers by providing tens of millions in cash and hundreds of millions of traffic. If the sales volume reaches a certain scale, they can receive a one-time cash reward of up to 1 million yuan per month. The platform will also provide high-commission high-quality inventory.

JD.com hopes to create a more professional live broadcast ecosystem, and for this purpose will introduce industry experts, well-known artists and other expert-level certified talents to 15 popular tracks. In addition, JD.com also recruits professional live broadcast service providers to settle in the industry belt and provides them with all-round support such as targeted communication, traffic and policy support.

JD.com proposed for the first time that it would introduce digital human live broadcast service providers and provide billions of traffic. It would also fully open up the emergence rights (platform traffic entrances) of JD.com's live broadcast channels, search, recommendations and other public channels to provide direct traffic support for digital human live broadcasts.

The above-mentioned insider said that by introducing digital human service providers on a large scale, JD.com wants to help merchants reduce the cost of launching live broadcasts through digital human live broadcasts, and nearly 10,000 merchants have benefited so far. At the same time, the JD.com platform will also stratify digital human service providers and improve the digital human product capabilities in terms of cooperation models and cooperation links.

After eight years of rapid development of live streaming e-commerce, whether JD.com can seize the tail of the live streaming trend and overtake others is the next highlight of the live streaming e-commerce industry, and time will soon give the answer.